YERBA MATE MARKET ANALYSIS

Regional Analysis

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Latin America has dominated the global yerba mate market for decades owing to favorable climatic conditions and prevalence of yerba mate plantations. Argentina and Paraguay, located in the Latin American region of Gran Chaco, is expected to account for over 76.8% share of the worldwide yerba mate production in 2024. The ideal subtropical weather and fertile soil found in this region provides an ideal habitat for cultivating high quality yerba mate plants. Major producers like Las Marias, Aguilera, and Canarias in Argentina have strong brand visibility in international markets due to consistent production of premium grade yerba mate leaves. The Latin American nations are focused on exporting high worth unprocessed leaves to meet the demand of European and North American consumers who prefer raw materials for the domestic manufacturing of mate beverages and food products. Producers benefit from low production costs in the region and have established long-term supply contracts with top importers.

The Asia Pacific region has emerged as the fastest growing market for yerba mate over the past five years. Countries like Japan and China are witnessing rising consumption of yerba mate tea and energy drinks containing extracts of the leaves. The changing dietary habits and growing health consciousness among urban populations is supporting this growth. Several beverage giants have launched yerba mate infused drinks in the region to capitalize on this trend. Meanwhile, importers are working with Latin American exporters to secure stable supplies and explore co-packing opportunities in Asia Pacific to cater to local tastes. The competitive pricing and availability of high-quality organic produce has encouraged Asian buyers to source directly from Latin American Union producers. Paraguay, in particular, has increased focus on the Asia Pacific market by promoting the nutritional and functional benefits of yerba mate through participation in food expos and digital campaigns. The move comes as buyers in Western markets are consolidating import orders, forcing Paraguay to diversify exports geographically for sustained sales.